Apple's stock declined by about 1% on Wednesday after reports surfaced that Chinese regulators are weighing a potential investigation into its App Store policies. Bloomberg reported that the State Administration for Market Regulation (SAMR) is reviewing Apple's commission fees, which take up to 30% of in-app transactions, as well as its restrictions on third-party payment services.

At this stage, regulators have not officially launched a probe. However, if the investigation proceeds, it could create further challenges for Apple in China—one of its most crucial markets. Neither Apple nor China’s Ministry of Commerce has issued a statement regarding the report.

The timing of this scrutiny aligns with increasing trade tensions between the U.S. and China. This week, Chinese regulators also opened an antitrust investigation into Google. Reports suggest Intel could be next in line for a similar review.

Apple has long defended its App Store policies, claiming they enhance security and ensure a seamless user experience. However, global regulators are taking a tougher stance. In Europe, the company has been forced to open its App Store under the EU's Digital Markets Act, allowing alternative payment methods and competing app stores.

If China moves forward with the probe, it could deepen Apple's challenges in the region. The company is already losing ground to domestic competitors like Huawei. In the December quarter, Apple’s sales in Greater China fell 11% year-over-year, highlighting the increasing pressure in one of its key markets.

PHOTO: XSREENGRAB

This article was created with AI assistance.